Inland Trucking. UAE... gateway to the Middle East. a RAK Logistics white paper. Why UAE a Strategic Loca9on?

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1 United Arab Emirates has not only undergone tremendous growth over the years but has now become a significant player in interna*onal trading and transport logis*cs. UAE's main advantage is its loca*on. It is right in the middle of the Far East and Europe and is at the crossroad between Eastern and Western markets. With its strategic loca*on, UAE has been named the "gateway" to the world's most major markets. Gulf Coopera9on Council (GCC), a poli*cal and economic alliance of six Middle Eastern countries - Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman. The GCC was established in Riyadh, Saudi Arabia, in May UAE is a leading mul*modal transporta*on hub within the world. The shorter transit *mes and cost savings from origin port to des*na*on also solidifies its interna*onal posi*oning. Dubai, itself, provides easy access to 2.2 billion consumers. The centralized *me zone allows an ease of business for both East and West business hours. Why UAE a Strategic Loca9on? Strategic geographical loca*on - Dubai is regarded as a regional hub and commercial capital for the Middle East, north Africa and beyond; UAE's proximity to other Gulf markets acts as an entry route to other GCC countries UAE's well-established infrastructure - Due to the size and sophis*ca*on of the 2 ports, Port Rashid and Jebel Ali Port, the cargo and re-export markets are very strong. Jebel Ali Port is not only one of the most modern and busiest ports but it also includes an economic free zone. Combined with major airline carriers and strong road system, UAE con*nues to strengthen its infrastructure. Strong banking system - Dubai has the largest and most sophis*cated financial services industry in the region. Strong workforce - educa*on is one of the UAE government's top priori*es. Building a knowledge based economy and posi*on itself as the academic hub in the region. Also, its liberal labor policies makes it easy and cost effec*ve to recruit people from all over the globe. Page 1

2 Why UAE a Strategic Loca9on? Legal framework Improvement is con*nuous in the areas of investment law, regula*ons and incen*ves which has been a mo*vator for foreign investment. Dubai became the first emirate to open its property market to foreign ownership. Stable poli*cal system despite regional poli*cal and security instability, UAE rule of law has been well maintained. Growing and diverse economy Performance in the UAE has been the most successful out of the GCC countries in diversifying away from oil. Currently almost 60% of Dubai's GDP is represented in Trade, logis*cs, transporta*on and tourism. The transforma*on into a diversified, innova*ve, service and knowledge-based economy con*nues to improve the business environment. It is one of the most liberal trade regimes in the Gulf abrac*ng capital from across the region. Free Zones and Open Trading The biggest incen*ve of a free zone is the absence of income tax. Dubai, alone has over 20 free zones that service different business clusters. The open-border foreign labor policy has also supported the liberal trade regime allow recruitment of expatriate workers at compe**ve wages. A high level of cross border movements are available. Quality Lifestyle and Culture Dubai has not only been recognized at one of the fastest growing ci*es but also one of the safest. There are over 200 na*onali*es that contribute to the unique culture of the city and has become a vibrant global des*na*on with its tallest building on the planet, largest manmade marina and the most luxurious hotels. The shopping experience only touts the world's leading retailers combined with the exclusive bou*ques. Visionary Leadership Leadership has create successful and vibrant ci*es in the UAE. The future possibili*es are unlimited in the global environment. Page 2

3 Mee9ng the Challenge Historically it has been challenging to get shipments cross border due to a fluctua*on of changes in regulatory law, shortage of equipment, and just overall changes in poli*cal direc*on amongst GCC countries. It can be difficult to ensure that you are mee*ng your customer needs by gekng that shipment to deliver on *me and at a cost effec*ve manner. "In all, I believe the UAE is still a fantastic growth opportunity even as profilers have varying opinions on to which economic category the country belongs. It will always have the distinct advantage of being equidistant from the Far East and Europe, and a great hub for the GCC countries." -- Mr. Issa Baluch, President of National Association of Freight and Logistics (NAFL) - Dubai However, at RAK Logis*cs, we know how to meet those challenges. - Long-standing rela*onships with border and law enforcement agencies allow us to ensure understanding of con*nuous updates and current situa*ons throughout the middle east. - We control the delivery to des*na*on with our own dedicated fleet and team of company-owned vehicles. - When we do outsource the delivery, we ensure all partners are process-driven and are vebed to meet ISO standards. - Our Land transport team are fully trained with local exper*se and a heart for serving. Our vast experience in road customs clearance requirements is instrumental when managing GCC cross border moves. - We are posi*oned for growth. Our cross border trucking service has tripled in 2015 and the growth opportuni*es con*nue to rise. - The usage of CARGOWISE system allows us seamless movement between transporta*on modes and includes full transparency and visibility to our customers throughout the life of the shipment. Page 3

4 Our Commitment RAK Logis*cs is commibed to the following guidelines: SAUDI ARABIA Riyadh 5 days Dammam 5 days Jeddah 7 days Jazan 9 days Yanbu 9 days Al Khobar 9 days Madina 7 days Macca 7 days Tabuk 11 days KUWAIT QATAR BAHRAIN JORDAN EGYPT 8 days 5 days 6 days 13 days 18 days Our Services - Door to Port - Local Distribution - Border Clearance upon customer request - Handling of Project cargo Over dimension Overweight cargo Page 4

5 Our Experience We have handled a broad range of products that bring with it a vast array of experience within the logis*cs area. Our equipment allows us flexibility in our handling of customer shipments. Equipment Available - Flatbed Trailers - Curtain Side Trailers - Low bed Trailers - Mul* Axels - Extendable trailers - Pickups - Reefer Trailers - Box Trailers - Cranes TEXTILE LUBRICANT MACHINERY AUTOMOBILE ELECTRONICS GLASS CEMENT CHEMICALS FOODSTUFF STEEL SPARE PARTS HOME APPLIANCES CERAMIC PRODUCTS FERTILIZERS Page 5

6 About RAK Logis9cs Our global organiza*on combines 10 different organiza*ons located in 17 countries with over 1,000 trained logis*cians and local entrepreneurs in an expanding worldwide network of loca*ons. We are a group of progressive business owners from all corners of the globe who have come together to create a unique enterprise. Our vision is to be the leading ASEAN headquartered integrated logis*cs company. We are developing opera*ons in all ASEAN countries plus we enjoy a strong strategic presence across the globe. Our 4 primary objec*ves are the cornerstone of our company: 1) WE VALUE OUR CUSTOMERS 2) WE VALUE OUR EMPLOYEES 3) WE VALUE BEING IN THE RIGHT PLACE. 4) WE VALUE FLAWLESS EXECUTION. RAK Logis*cs collaborates with private equity firm, Samena Capital. This private equity company focuses on investments across mul*ple asset classes in the Subcon*nent, Asia, Middle East and North Africa, collec*vely known as the SAMENA region - our sweet spot. If you are responsible for ensuring customer sa*sfac*on in your supply chain, you want to select a partner who is as invested in your deliverables as you are. Let me tell you about our RAK Logis*cs team! Contact us at SALES@RAKLOGISTICS.COM for more informa*on. Page 6